Silvercorp Metals (SVM.TO) will temporarily slow down its operations at the Ying and GC mining operations due to new nationwide safety measures across the Chinese mining industry.
Silvercorp will work with government regulators in implementing new safety systems and obtaining needed approvals for full operations, the company said on Monday.
Production at the Ying Mining District is expected to be affected by 40% to 50% during the July-September quarter, and production at the GC mine by approximately 50%. For the current quarter, the impact on production is expected at 10 to 15%.
This comes after a major accident at a coal mine in Shanxi Province in May 2026, which prompted the Chinese government to issue new safety requirements to the entire mining industry.
Operations were suspended at Ying and GC after non-compliances were identified across mines. Vendors have been engaged to pass safety standards. The work is expected to cost about US$5.5 million and take about 50 days to complete. Certain facility improvements and upgrades will cost an additional US$6 million.